Compliance Updates: UK, UAE, and Vietnam
UK: Modernizing R&D Tax Relief
According to Business News Wales, UK Chancellor Rishi Sunak has released more information on the UK government’s R&D tax relief reforms.
The reforms are designed to support research and development, along with UK innovation, while targeting abuse and improving compliance.
Under the forms, the following areas will also become a valid cost category for an R&D expenditure:
- License Payments for Data Sets
- Cloud Computing and Software
- Refocus Toward UK Innovation: If a company contracts R&D to a third party overseas, that expense will no longer be able to be claimed as an expenditure in the UK.
To further combat abuse of the system, the following will also be in effect:
- All claims need to be submitted digitally (except companies who have an exemption)
- More detail required to substantiate a claim
- Endorsement of claims by a senior officer within a company
- Requirements to inform HMRC in advance of a claim
- Claims must include the details on any agent who advised the company on the claim
The changes won’t be fully implemented until April 2023.
UAE Moving to New Work Week
The UAE is moving to a shorter work week and a longer weekend. Beginning Jan. 1, 2022, The United Arab Emirates government will implement a new weekend for all federal employees.
Employees will work Monday through Thursday, with a half day on Friday and the weekend beginning Friday afternoon.
UAE: New Labor Laws for 11 Worker Duties
Also, in the UAE, there are 11 new rules that a worker must comply by:
- Perform the work himself or herself under the supervision and control of the employer, or his or her representative, and as specified in the contract, and not assign the work to any other worker or person.
- Display good behaviour and conduct and observe professional honesty and integrity.
- Maintain the means of production and working tools in his possession, and maintain the same by taking the necessary actions to store them at the appropriate places.
- Keep confidential all information and data acquired by him in the course of his employment, and not divulge business secrets and return anything in his possession to his employer at the end of service.
- Not keep in his personal capacity any hard or soft papers or documents in relation to the business secrets without permission of the employer, or his representative.
- Implement safety and occupational health instructions set by the establishment in accordance with the legislation in force or the work regulations and instructions.
- Work during the approved working days and working hours specified in the employment contract, and communicate and respond effectively to complete the works assigned to him efficiently.
- Work diligently and constantly to develop his professional and job skills, and improve his performance to the employer.
- Not work for others in violation of the provisions of this Decree-Law and other relevant legislation in force.
- Evacuate the accommodation provided to him by the employer, within a period not exceeding 30 days from the end of his service. However, the worker may stay in the accommodation after the expiration of such period, if the employer agrees thereto, provided that the worker bears the cost of accommodation, or as may be agreed upon in writing with the employer.
- Any other obligations set by the provisions of this Decree-Law and its executive regulations or any other legislation in force in the UAE.
In Vietnam, ex-pats will receive two additional holidays off than Vietnam nationals in 2022. Vietnam nationals will receive a total of 22 days; with foreign workers receiving 24.
The reason why ex-patriate workers are getting the extra days is to be able to celebrate their own countries’ New Year holidays and another extra day for one of their own national holidays.